Difference Between Private and Public Companies

Point of DifferencePrivate CompanyPublic Company
Number of MembersMust have a minimum of 2 and a maximum of 200 members (excluding employees).Must have a minimum of 7 members, with no upper limit on the number of shareholders.
Number of DirectorsRequires a minimum of 3 directors.Requires a minimum of 3 directors.
Invitation to the PublicCannot invite the public to subscribe for shares or debentures.Can invite the general public to subscribe for shares and debentures through an Initial Public Offering (IPO).
Transferability of SharesShares typically have restrictions on transferability as defined in the company’s agreement.Shares are freely transferable on stock exchanges, allowing for easier ownership changes.
Commencement of BusinessRequires obtaining a Certificate of Incorporation from the Registrar of Companies to begin operating legally.Similar to private companies, they need a Certificate of Incorporation from the Registrar of Companies to commence business.
Public DepositsProhibited from accepting deposits from the general public.Can accept public deposits, although they are subject to specific regulations and limitations.

Q12 distinguish between LIC AND GIC ?
Ans 1. Type of Insurance:

LIC: Provides life insurance. Covers the risk of death of the insured, offering financial protection to the beneficiaries.
GIC: Offers general insurance, covering various non-life risks. This includes car insurance, health insurance, property insurance, travel insurance, etc.
2. Focus:
LIC: Primarily focuses on individual and group life insurance products.
GIC: Acts as a holding company for various general insurance companies in India. It does not directly sell insurance policies to individuals.
3. Investment and Profit Sharing:
LIC: Offers participating and non-participating life insurance plans. Participating plans share profits with policyholders through bonuses.
GIC: Does not directly offer insurance policies or participate in profit sharing.
4. Regulation:
LIC: Regulated by the Insurance Regulatory and Development Authority of India (IRDAI) under the Life Insurance Corporation Act, 1956.
GIC: Regulated by the IRDAI under the Companies Act, 1956.
5. Ownership:
LIC: Public sector undertaking (PSU) owned by the Government of India.
GIC: Public sector undertaking (PSU) owned by the Government of India.

Q1 what is debit card?
Ans >Debit Card is an electronic plastic card or a bank card which can be held by any person who has a bank account, and it can be used instead of cash while purchasing goods or rendering services, as well as, they can withdraw cash anytime and at anyplace from an ATM.
Q2 what is credit card?
Ans A credit card is a physical payment card that allows you to get credit from a financial institution. You can use the pre-approved limit to make purchases and repay the borrowed amount with an interest each month within your billing cycle.
Q3 what is bank draft ?
Ans A bank draft is a payment that is like a check, but its amount is guaranteed by the issuing bank. The funds are drawn from the requesting payer’s account and are then placed in the bank’s reserve account until the draft is cashed by the payee.
Q4 define insurance ?
Ans Insurance is a means of protection from financial loss in which, in exchange for a fee, a party agrees to compensate another party in the event of a certain loss, damage, or injury.
Q5 what is insurance policy ?
Ans In insurance, the insurance policy is a contract (generally a standard form contract) between the insurer and the policyholder, which determines the claims which the insurer is legally required to pay.
Q6 what is insurance premium?
Ans The insurance premium is the sum of money an individual or business must pay for an insurance policy. The amount of insurance premium that is paid out by the policyholder to the insurance company depends on a variety of factors
Q4.What are the basis of international trade.
Ans.The basis or reasons for international trade are-
[I] Uneven distribution of Natural Resources: No country of the world is self-sufficient for the production of all types of goods due to uneven distribution of the natural resources. So, every country has to depend on another countries for those goods which the country can not produce internally due to scarcity of natural resources.
[II] Specialisation: There are many countries which are specialised in the production of some particular goods because of having some advantages like advanced technology, know- how, high labour productivity, suitable climatic condition etc. So, these countries can export their goods to other countries at cheaper rate.
[III] Cost Benefits: Production costs differ in different countries because of difference in socio-
economic, geographical and political conditions. So, the country which does not get cost
benefits in the production of a product has to participate in foreign trade in to order
import the product
[IV] Differences in Economic Growth Rate: Economic growth rates of all the countries are not the same. Some countries are developed, some are developing while the other are under-developed. The under-developed and developing countries have to depend upon developed countries for financial help which ultimately encourages foreign trade.
Q5. advantage of e business ?
Ans E-businesses offer several shared advantages for both businesses and customers:
Wider reach and convenience: Businesses access a global market and operate 24/7, while customers can shop anytime, anywhere.
Cost-effectiveness: Businesses save on overhead costs, and customers often find competitive prices.
Increased efficiency: Businesses can automate processes, while customers can browse, compare, and purchase products quickly.
Global Reach: Sell to anyone, anywhere, breaking geographical barriers.
Reduced Costs: Lower overhead eliminates physical store expenses.
24/7 Availability: Customers can shop anytime, boosting convenience.
Q6 four feature of sole proprietorship business ?
Ans Sole Ownership and Control: A sole proprietorship has a single owner who controls all aspects of the business, including decision-making, management, and operations. This allows for flexibility and quick decision-making, but also means the owner assumes all risks and responsibilities.
Unlimited Liability: The owner of a sole proprietorship has unlimited liability, meaning their personal assets are not separate from the business assets. If the business incurs debts or lawsuits, the owner’s personal property (like their car or house) could be used to settle them.
Limited Formalities: Establishing a sole proprietorship typically involves minimal legal and regulatory formalities. Often, it doesn’t require any specific registration beyond obtaining business licenses or permits, depending on the location and industry. This simplicity makes it an easy and affordable business structure to set up.
No Separate Legal Identity: A sole proprietorship is not considered a separate legal entity from its owner. This means the business and the owner are one and the same in the eyes of the law. All business income is considered the owner’s personal income and taxed accordingly.
Q7 what is partnership deed ?
Ans A partnership deed is a written agreement between partners that outlines the rules and responsibilities of running a business together. It covers aspects like profit sharing, roles, dispute resolution, and even dissolution of the partnership. Having a formal deed is crucial to protect all partners and ensure a smooth collaboration.
Q8 what is bill of entry ?
Ans A bill of entry is a legal document that is filed by importers or customs clearance agents on or before the arrival of imported goods. It’s submitted to the Customs department as a part of the customs clearance procedure. Once this is done, the importer will be able to claim ITC on the goods.
ANS 9 RTGS: Real-Time Gross Settlement
NEFT: National Electronic Funds Transfer
NABARD: National Bank for Agriculture and Rural Development
NICS: National Informatics Centre Service

Q10 DISCUSS THE Characteristics of a Cheque:?
Ans A cheque is a written order instructing a bank to pay a specific sum to a named person (payee). Key features include:
Unconditional order to pay: Bank must pay if funds are sufficient.
Specified amount: Clearly stated in both words and numbers.
Named payee or bearer: Payable to a specific person or anyone (bearer).
Dated: Indicates when the cheque was issued.
Drawer’s signature: Authorizes the bank to pay.
Drawn on specific bank: The bank where the drawer has an account.
Negotiable (sometimes): Can be transferred to another person.
Limited validity: Needs to be cashed within a specific timeframe.
Stop payment: Drawer can prevent the bank from honoring the cheque.
Subject to verification: Bank checks authenticity and validity before payment.
Ans Convenience

24/7 Availability: Conduct transactions anytime, anywhere without traditional business hours restrictions.
Accessibility: Shop or make payments from your computer, phone, or any device with an internet connection.
Location-Independence: Transact regardless of physical location, opening up global shopping and services.
Faster Processing: Instant fund transfers and transaction confirmations compared to traditional methods.
Automated Systems: Streamlined ordering, payment, and record-keeping minimize manual intervention.
Reduced Errors: Fewer mistakes due to data being entered directly by the customer.
Encryption: Sensitive data like credit card details are protected during transmission.
Fraud Detection: Systems monitor unusual activity, reducing fraudulent transactions.
Authentication: Measures like password protection, two-factor authentication, and digital signatures verify users.
Expanded Options
Global Reach: Access to products and services from businesses worldwide.
Multiple Payment Methods: Choose from credit cards, debit cards, e-wallets, direct bank transfers, etc.
Price Comparisons: Easily compare prices across different sellers to find the best deals.